ALIBABA Group Holding Ltd. has agreed to a US$266 million deal to acquire the South China Morning Post and other media assets of SCMP Group Ltd.

    In a filing to the Hong Kong stock exchange yesterday, SCMP Group Ltd. cited an “uncertain” future for traditional publishing as a key reason behind the sale, adding Alibaba would likely be able to “unlock greater value” from the business.

    The all-cash purchase transfers control of the 112-year-old English language newspaper from Malaysian tycoon Robert Kuok to Chinese billionaire Jack Ma.

    While Ma is known to be politically well-connected, some said the shift in ownership was not as drastic as some people were making out. Kuok has owned the broadsheet since 1993.

    Alibaba’s executive vice chairman Joe Tsai dismissed suggestions Alibaba would compromise the newspaper’s editorial independence in a letter to readers, but added the world needed “a plurality of views when it comes to China coverage.”

    SCMP Group said it expected to record a gain of around HK$1.4 billion from the asset sale. It plans to use the proceeds for the payment of a special cash dividend.

    Shares of SCMP Group have been suspended since February 2013 because it did not meet the minimum required percentage of total issued share capital available on the public market.

    Alibaba has acquired or invested in a growing portfolio of media and content companies in recent years. In June, the company agreed to pay US$194 million for an undisclosed stake in domestic financial media firm China Business News.

    (SD-Agencies)